MEMORIA EFQM BUVA 2017 CRITERIO 3 PERSONAS

Marketing 1.6 10.6 4.7 26.6 Building, Maintenance, and Utilities 1.1 7.3 1.0 5.6

Information Technology 1.1 7.3 1.0 5.6 Professional Services 1.6 10.6 0.7 4.0 Conferences and Professional Development 0.6 4.0 0.6 3.4 Travel 0.4 2.6 0.5 2.8 Recruiting 0.1 0.6 <0.1 0.0 Other1 _{0.3 2.0 0.3 1.7} Total $15.1 100.0% $17.7 100.0%

1_{Includes business insurance, supplies, equipment, capital lease payments, and other expenditures.}

Staff Salaries and Fringe Benefits

Because WEDC is not a state agency and its staff are not state employees, it is not authorized positions through the state budget. As shown in Table 17, WEDC had 96 staff on July 1, 2014. This total included 31 staff WEDC had employed since its inception and 19 staff it had employed for less than one year.

WEDC’s administrative expenditures increased 17.2 percent from FY 2012-13 to FY 2013-14.

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Table 17

Number of WEDC Staff1

July 1, 2014

Functional Area Number

Economic and Community Development Division 20 Credit and Risk Division 14 Business and Industry Division 9 Marketing and Communication Division 8 International Business Development Division 7 Legal Services and Compliance 7 Executive Office 6

Finance 6 Information Technology 6

Entrepreneurship and Innovation Division 5 Human Resources 4 Office of Public Policy 3 Process Improvement 1

Total 96

1_{Excludes one University of Wisconsin System Administration staff member who}

consulted part-time for WEDC.

WEDC experienced staff turnover from July 2013 to July 2014. We found that 22 of the 99 staff WEDC had employed on July 1, 2013, including one vice president, were no longer employed by WEDC on July 1, 2014. As of July 1, 2014, WEDC had filled 19 vacant positions in response to this turnover, and 3 positions were vacant. WEDC has also experienced turnover in its senior management since July 1, 2014. The vice president of international business development departed in July 2014, the chief operating officer departed in November 2014, and the chief financial officer departed in January 2015. In February 2015, the vice president of economic and community development became the chief operating officer, creating a vacancy in this vice president position. In April 2015, it was announced that the vice president of entrepreneurship and innovation was departing and that a new chief financial officer had been hired.

We found that 22 of 99 staff WEDC employed on July 1, 2013, were no longer employed by WEDC on July 1, 2014.

WEDC’s expenditures for staff salaries and fringe benefits increased from $8.3 million in FY 2012-13 to $8.9 million in FY 2013-14, or by 7.2 percent, primarily because of increases in health insurance premiums and salaries. WEDC’s governing board approved a 1.0 percent salary increase in FY 2013-14 for staff who met or exceeded performance expectations, similar to the salary increase provided to state employees.

We examined WEDC’s expenditures for salaries and fringe benefits, which represented 50.3 percent of its total administrative

expenditures in FY 2013-14. We reviewed documentation for ten individuals WEDC employed in FY 2013-14 and found the salary and fringe benefits expenditures for all ten individuals were supported by information WEDC maintained.

We also determined the amounts paid to selected WEDC staff. As shown in Table 18, WEDC paid salaries of more than $100,000 to 11 staff in FY 2013-14.

Table 18

Salaries Paid to Selected WEDC Staff in FY 2013-14

Salary

Chief Executive Officer $185,000 Chief Operating Officer 105,800

Chief Financial Officer1 _122,000

Chief Legal Counsel and Compliance Officer1 _135,000

Vice President of Entrepreneurship and Innovation 116,900 Vice President of Economic and Community Development 116,600

Vice President of International Business Development2 _110,300

Vice President of Credit and Risk 110,000 Vice President of Business and Industry 106,800 Vice President of Marketing and Communication 104,000 Director of Global Capital Strategies 102,500

1_{These individuals also received $50 recognition awards.} 2

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WEDC may provide staff with merit and recognition awards in addition to their salaries. Merit awards acknowledge staff who exceed performance expectations for a project, and recognition awards acknowledge a special effort or accomplishment. In FY 2013-14, WEDC provided 51 staff with merit and recognition awards totaling $63,850.

As shown in Table 19, WEDC provided 27 staff, including one vice president, with merit awards totaling $62,500 in FY 2013-14. Individual merit awards ranged from $500 to $5,000.

Table 19

Merit Awards Provided to WEDC Staff

FY 2013-14 Award Amount Staff Total Amount Awarded $5,000 6 $30,000 $3,500 1 3,500 $3,000 1 3,000 $2,500 1 2,500 $2,000 5 10,000 $1,500 5 7,500 $1,000 4 4,000 $500 4 2,000 Total 27 $62,500

For recognition awards, WEDC may provide staff with one or two $25 gift cards. Staff may receive multiple recognition awards in a year. In FY 2013-14, WEDC provided 29 staff, including the chief financial officer and the chief legal counsel and compliance officer, with 54 gift cards with a face value totaling $1,350. Five of the 29 staff were also provided merit awards.

In FY 2013-14, WEDC maintained an inventory of gift cards used as recognition awards and had 42 gift cards on June 30, 2014. WEDC found some gift cards had declined in value because of service fees charged for nonuse of the cards. For example, two $25 gift cards provided to a staff member in FY 2013-14 each had an actual value of only $13. Although the business from which WEDC had purchased these gift cards subsequently restored other gift cards in

In FY 2013-14, WEDC provided 51 staff with merit and recognition awards totaling $63,850.

WEDC’s inventory to their original value, WEDC could consider purchasing gift cards only after a staff member has been given a recognition award. Doing so would eliminate the risk of gift cards declining in value because of nonuse and would also eliminate the physical controls necessary for maintaining an inventory of gift cards.